NCD-Tricks or Treats

NCD is shortform of No Claim Discount or some use NCB (No Claim Bonus). This scheme has drafted by PIAM to give us some sort of bonus/discount for premium paid but after its expiry date...no claim made& no accident happen.Its not in monetary but its will be applied on next renewal either with existing insurer or different insurer. Its will automatically detected in insurer system and managed by ISMNCD. NCD amount increasing every time we renew the policy and detailed as per below following:
Period      NCD Amount
0    year     -0% 
1st year     -25%
2nd year   -30%
3rd year   -38.33%
4th year   -45%
5th year n beyond  55%


Thats the tricks. The treat is we may transfer the NCD from car to another car.If we opt to sell old car and buy new one, we may use up the NCD but make sure the ownership is under same person not your spouse or parent.To get maximum NCD one shall plan to buy new car after the old car expiry date so we can use up max NCD available but its not the case if we have 55% NCD already.


But if we opt to buy new car and to retain the old car, what we should do is transfer the NCD from the old car to the new one and take up new insurance for the old car. here is the example:


Old Car
Kia Sorento 2.5T, Year 2003,NCD 55%,W/Screen 800,Sum Insured RM42,000.00
PREMIUM RM746.59


New Car

Kia Sorento 2.5T, Year 2011,NCD 0%,W/Screen 1,800,Sum Insured RM138,000.00

PREMIUM RM4,101.29

if we opt to transfer then,

OLD CAR PREMIUM-RM1,500.00

NEW CAR PREMIUM-RM1,974.79

Which mean we can save up to RM2,000.00. What about if our old car is Proton Tiara and our new car is AUDI Q7 or BMW X6 or RANGE ROVER 4.4... . well, its way a lot more excess we shall save. Rich man normally dont have much time to cancell,take up old NCD or other documentation..get your agent to do it for you.